Tesco in Indonesia Essay Example | Topics and Well Written Essays - 1500 words

Tesco in Indonesia - Essay Example 1). Due to their nature of co-operation and the willingness to share, competition is not very common, as it is viewed as a practice that benefits oneself. Nevertheless, business is evident in Indonesia with competitive industries from within and foreign; however, the government of Indonesia is very keen on how businesses operate such that, laws that ensure fair competition have been put in place. For instance, Law number 5 prohibits monopolistic practices and unfair business competition. The objectives of Indonesia competitive law include safeguarding the interests of the public by improving the economic efficiency. Secondly, it is geared towards creating a conducive business climate by ensuring fair business competition. Thirdly, the law prevents monopolistic practices, which may lead to unfair business practices, and finally, it ensures effectiveness and efficiency in business operations. In addition, Indonesia gives room from foreign businesses to operate in their country, as long as they abide to the rules and regulations governing business practices (Act number 5, p1). Historical background of Tesco Tesco started its operations in 1919, when its owner Jack Cohen started selling groceries in a stall, which was located in London, with only a ?1 on the first day. In 1924, Tesco become a brand after acquiring tea shipment and in 1930, Mr. Cohen built a warehouse in North London declaring Tesco a private company. Over the years, it bought rival shops, and by the 60s, the supermarket was already selling a variety of products. Tesco entered Guinness book of records as the largest store in Europe, and in the 70’s, Tesco had opened a petrol station, which was an independent retailer. In the 90’s, Tesco had already completed several takeovers, while in 1996, it introduced a 24-hour store (The telegraph Para. 10). Today, Tesco has grown to a giant supermarket, and it is visible globally. Its diversification is evident in the United States, Indonesia, La tin America, china, Scotland, china, Norway, Middle East and Mexico. In addition, Tesco is committed to corporate social responsibility such as charities for schools and communities. The company has incorporated technology and it encourages online shopping. In addition, the supermarket offers a range of products to meet the customer’s needs. Business culture and social preferences of Indonesia To operate successfully in Indonesia, a corporate requires understanding the business culture and laws governing businesses this country. Therefore, establishing of relationships is necessary; however, it takes time. Loyalty and trustworthiness are a necessity in maintaining a relationship, especially with the government officials. In this country, men are considered mature if they are over the age of 40 years; therefore, a foreign country may consider sending older executives rather than the young ones, especially in negotiations (Doing Business in Indonesia, p112). In addition, busine sses in Indonesia are required to develop their surrounding community; therefore, corporate social responsibility is encouraged. Firms are encouraged to recruit carefully for their positions, as unsatisfactory performance is not regarded enough reason to lay off an employee. Dismissal for misconduct is effective only after three warnings. Developing strong relationships with